SHANGHAI, Jul. 12 (SMM) – The most active SHFE lead contract price gapped some RMB 100/mt higher at RMB 13,940/mt on Thursday boosted by Bernanke’s signal on maintaining easing policies and Chinese Premier Li Keqiang hinting at pro-growth measures. Prices then moved between RMB 13,920-13,960/mt to end at RMB 13,950/mt, up RMB 100/mt from a day earlier, but resistance at the 20-day moving average remains strong. However, the increase in SHFE lead lagged behind other base metals. Trading volumes for the most active contract fell 14 lots to 158 lots, while positions increased 42 lots to 2,450 lots.
In China’s spot lead markets, Chihong Zn & Ge raised its quote to RMB 13,780/mt. Traders most offered goods of Chihong Zn & Ge at RMB 13,790/mt, but transactions were sparse due to high prices. Hanjiang’s quotes were up RMB 40/mt to RMB 13,730/mt, while Mengzi was offered at RMB 13,720/mt. Warrants for Nanshan were offered at RMB 13,750/mt, with premiums of RMB 20/mt over the SHFE 1307 lead contract price. Traded prices were some RMB 10-20/mt lower than quotes. Cargo holders kept quotations high given rises in futures prices, while downstream buyers had to replenish goods to meet production needs on weekend, but overall trading was still modest. Despite further rises for base metals, most downstream buyers were unwilling to purchase.